I can't believe that there are AI image and content generation tools in photoshop, but scaling a layer down, then scaling it back up at some later time preserves the 'lower' resolution of the scaled down object and you just end up scaling up a blurry mess.
I'm aware that making that image a smart object first is the right workflow and preserves all of the edits (and more, and it's awesome) but sometimes I do one off or non-production play files and I just work with flat layers. I think preserving the original image size (at least) would be great, if not, scaling up via simple AI pixel doubling tools would be even better so that if you're using a small image and want to pull out the resolution, you don't have to use other tools.
Thanks!